Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 24P
a)
To determine
Determine the average cost of sales per unit
To determine
Whether the cost of booth space is fixed or variable cost
b)
To determine
Determine the price for the sales volume of 200, 250, 300,350 or 400 units.
c)
To determine
Determine the total cost of booth space
To determine
Whether the cost of booth space is fixed or variable relative to the number of shows attended.
d)
To determine
Determine the additional cost per unit sold
To determine
Whether the cost is fixed or variable
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Problem 1. Mahinahon Company would like to institute an activity-based costing system to price products. The company's Purchasing Department incurs costs of P550,000 per year and has six employees.
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Issuing purchase orders
# of purchase orders
1
P285,000
Reviewing receiving reports
# of receiving reports
2
P190,000
Making phone calls
# of phone calls
3
P220,000
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Question 18
View Policies
Current Attempt in Progress
E-Flix rents DVDS that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its
customers. Information on those activities for the month of July follows:
Estimated
Expected Use of
Cost Drivers
Cost Pools
Cost Drivers
Overhead Cost
Order taking costs
Number of orders
$20,592
187,200 orders
Technology support
Number of minutes
$11,700
234,000 minutes
Picking and shipping
Number of DVDS
$39,624
330,200 DVDS
costs
During July, the Tucker family placed 17 orders consisting of 21 DVDS. Tucker required 7 minutes of tech support. Customers pay $9.00 per
month to rent unlimited DVDS. Using ABC, how much overhead is applied to the Tucker family account for technology support?
O Some other answer
O $1.87
O $0.05
o$0.35
2:28 P
)
10/13/23
Chapter 11 Solutions
Survey Of Accounting
Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2QCh. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...
Ch. 11 - 14.The president of Bright Corporation tells you...Ch. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 2-4A Determining total variable cost The...Ch. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prepare an income statement using the contribution...Ch. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Problem 2-19A Context-sensitive nature of cost...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 1ATCCh. 11 - Prob. 2ATCCh. 11 - Prob. 3ATCCh. 11 - Prob. 4ATCCh. 11 - Prob. 5ATC
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- View Policies Current Attempt in Progress E-Flix rents DVDS that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its customers. Information on those activities for the month of July follows: Estimated Expected Use of Cost Drivers Cost Pools Cost Drivers Overhead Cost Order taking costs Number of orders $20,592 187,200 orders Technology support Number of minutes $11,700 234,000 minutes Picking and shipping Number of DVDS $39,624 330,200 DVDS costs During July, the Tucker family placed 17 orders consisting of 21 DVDs. Tucker required 7 minutes of tech support. Customers pay $9.00 per month to rent unlimited DVDS. Using ABC, how much overhead is applied to the Tucker family account for order taking costs? O $4.74 O $2.52 O $1.871 O $6.45 Submit Answer Save for Later Attempts: 0 of 1 used 2:27 PM 10/13/20 earrow_forwardCase Study 1- Output Decisions Using Systems of Linear Equations Let's assume that you have a company that buys goods from a local factory and you resell them online . .You buy product A for $ 16 and sell it for $ 19 . Each unit of product B brings you $ 12 of profit and each unit of product costs $ 31 . You lost your inventory books but you have the following information about the last month : Your total profit was $ 17,334 The total number of products B and C you sold were 1,269 The only delivery of product you received was for $ 15,531 You fulfilled an order for one product A and one product C and you charged customer $ 56 . Find the number of sold items and the profit for each product .arrow_forwardExercise 2 (Cost Estimation; Account Classification) Black's Compact Disk Store expanded the size of its store in Mandaluyong City, two months ago. The owner. Manuel Black, has asked you to analyze the cost structure in his store, as a basis for assessing the profitability of his business. He provides you with account data for the most recent month, wnch he explains is representative of what these costs are in most months of the year; there is not much seasonality in his business. Last month 8,900 compact disks were sold. Атоunt Ассоunt Salespersons' wages Compact disk purchases Rent P17,800 66,750 10,250 400 Depreciation Shopping bags Insurance 180 750 Advertising Utilities Black's salary 650 1,250 18,500arrow_forward
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